Consumer Legal Literacy and Contractual Default in Automobile Pre-Order Transactions: An Empirical Socio-Legal Study from Indonesia
DOI:
https://doi.org/10.53905/Veritas.v2i02.4Keywords:
breach of contract, wanprestasi, indent (pre-order) system, car sale-and-purchase agreement, consumer protection, indonesian civil codeAbstract
Purpose of the study: This study aims to identify the forms of breach of contract (wanprestasi) that arise in car sale-and-purchase agreements conducted under the indent (pre-order) system, and to examine the factors that contribute to such breaches, using PT. Hadji Kalla Toyota Pare-pare, a Toyota dealership in South Sulawesi, Indonesia, as a case study.
Methodology: An empirical (socio-legal) research method was employed, combining normative analysis of the Indonesian Civil Code (Kitab Undang-Undang Hukum Perdata/KUHPerdata) and Law No. 8 of 1999 on Consumer Protection with field data collected at the dealership. Primary data were obtained through semi-structured interviews with the dealership's sales manager and a questionnaire administered to 40 customers who had engaged in indent transactions; secondary data were drawn from statutes, textbooks, and prior scholarship. Dealership sales records for the 2019–2020 period were analyzed descriptively, and questionnaire responses were tabulated as frequencies and percentages.
Results: Of 275 vehicles sold in 2019, 89 were indent transactions with zero recorded defaults; of 275 vehicles sold in 2020, 79 were indent transactions with two recorded defaults (2.53% of indent transactions), consisting of one delayed delivery attributable to a customer's inability to travel during COVID-19 mobility restrictions and one unilateral cancellation by a customer facing a family emergency. No default originating from the dealership itself reached litigation. Survey results show that although 70% of respondents were aware of the indent mechanism in general, only 32.5% recognized non-conforming or delayed delivery as legally constituting default, and only 25% were aware that defaulting parties may face binding sanctions.
Conclusions: Breach of contract under the indent system at the dealership studied was infrequent and, in the cases observed, was linked to pandemic-related force majeure and personal exigency rather than opportunistic conduct by either party. Nonetheless, a pronounced gap between customers' general awareness of the indent system and their specific legal knowledge of default and its consequences represents a latent consumer-protection risk. Strengthening pre-contractual disclosure and legal literacy is recommended to reduce future disputes.
References
Agustianto, A. (2022). An Exoneration Clause in Standard Agreements: Problems in Consumer Protection. Pandecta Research Law Journal, 17(1), 129–136. https://doi.org/10.15294/pandecta.v17i1.35401
Alderman, R. M., Franceschi, A. D., Giancaspro, M., Howells, G., Chen, L., Lete, J., Micklitz, H., Mišćenić, E., Naudé, T., Pichonnaz, P., Poillot, É., Ramsay, I., Terryn, E., Twigg‐Flesner, C., & Wilhelmsson, T. (2020). Consumer Law and Policy Relating to Change of Circumstances Due to the COVID-19 Pandemic. Journal of Consumer Policy, 43(3), 437–450. https://doi.org/10.1007/s10603-020-09463-z
Ardi, A. (2019). Prestasi dan wanprestasi dalam hukum kontrak. Tanoto Foundation.
Ariayuda, A., Hardjomuldjadi, S., Sami’an, S., & Wibowo, D. E. (2025). The Binding Force of Goods/Services Procurement Contracts from the Perspective of Article 1338 of the Indonesian Civil Code. Interdisciplinary Social Studies, 5(1), 359–368. https://doi.org/10.55324/iss.v5i1.988
Auliandi, R., & Simanjuntak, M. H. (2020). Defaults in Credit Agreements: How Are They Settled? Unnes Law Journal, 6(1), 143–162. https://doi.org/10.15294/ulj.v5i2.23514
Bakarbessy, L., & Anand, G. (2018). Buku ajar hukum perikatan. Zifatama Jawara.
Bhonsle, V. K. U., & Ahmad, Prof. T. (2025). Between Obligation And Impossibility: The Legal Weight Of Force Majeure Clauses In A Post-Pandemic Commercial World. International Journal of Environmental Sciences, 11, 985–990. https://doi.org/10.64252/5r53k760
Cargill, V, A., V, E., A, Von, B., Pezold, Pezold, V., V, Enterprises, H., Limited, Ross, A., Anderson, Anderson, Morris, P., Australia, V., V, I., Anderson, Holdings, T. G., Maryland, B., … Case, T. (2020). Defence Arguments in Investment Arbitration. ICSID Reports, 18, 9–108. https://doi.org/10.1017/9781107447455.002
Damayanti, H. R., Yunita, A. S., & Aprilia, M. L. (2019). Arbitration Agreement to Non-Signatory Parties in Indonesia. Notaire, 2(2), 173–173. https://doi.org/10.20473/ntr.v2i2.14494
Dewantoro, D., Busro, A., & Priyono, E. A. (2023). Covid-19 Pandemic as Force Majeure Unable to Fulfill Obligation in Financing Agreement. Pandecta Research Law Journal, 18(1), 76–87. https://doi.org/10.15294/pandecta.v18i1.42295
Fisman, R., Paravisini, D., & Vig, V. (2017). Cultural Proximity and Loan Outcomes. American Economic Review, 107(2), 457–492. https://doi.org/10.1257/aer.20120942
Florou, A. (2017). Contractual renegotiations and International investment arbitration : a relational contract theory interpretation of investment treaties. In HAL (Le Centre pour la Communication Scientifique Directe). Centre National de la Recherche Scientifique. https://doi.org/10.1163/9789004407473
Hansen, S. (2025). Legal case study on indent house purchasing in Indonesia. Journal of Property Planning and Environmental Law, 18(1), 20–40. https://doi.org/10.1108/jppel-03-2025-0026
Irawati, J., & Hutagalung, K. G. K. (2023). Standard Clauses in Vehicle Purchase Credit Agreements in Indonesia: An Examination of Consumer Protection and Legal Enforcement. Journal of Judicial Review, 25(2), 255–272. https://doi.org/10.37253/jjr.v25i2.8589
Kadafi, A. A., Hastuti, R., & Iqbal, M. (2025). A Juridical Review of Breach of Contract in Commercial Cooperation Agreements in Indonesia. Justicia Insight, 1(2), 50–55. https://doi.org/10.70716/justin.v1i2.160
Khasanah, M., Sudirman, M., & Candra, M. (2025). Legal Protection for Apartment Buyers in Relation to the Non-Fulfillment of Development Obligations. International Journal of Education and Literature, 4(3), 432–439. https://doi.org/10.55606/ijel.v4i3.322
Kunarso, K., Nirmala, K., qur’ani, F., & Putri, I. J. (2026). Hibridisasi Kontrak dan Validitas Jejak Digital terhadap Dalil Force Majeure pada Wanprestasi Reseller E-Commerce. Majelis, 3(2), 183–198. https://doi.org/10.62383/majelis.v3i2.1660
Levy, K. (2017). Book-Smart, Not Street-Smart: Blockchain-Based Smart Contracts and The Social Workings of Law. Engaging Science Technology and Society, 3, 1–15. https://doi.org/10.17351/ests2017.107
Lumineau, F., & Malhotra, D. (2010). Shadow of the contract: how contract structure shapes interfirm dispute resolution. Strategic Management Journal, 32(5), 532–555. https://doi.org/10.1002/smj.890
Macchiavello, R. (2022). Relational Contracts and Development. Annual Review of Economics, 14(1), 337–362. https://doi.org/10.1146/annurev-economics-051420-110722
Mubarach, D. (2025). Legal Liability in Banking Credit Agreements Against Defaulting Debtors in Indonesia. Legal Spirit, 9(2), 363–372. https://doi.org/10.31328/ls.v9i2.5833
Muskibah, M., Yetniwati, Y., Sasmiar, S., & Holish, A. M. (2023). Force Majeure During COVID-19 Outbreaks: Case of the Cancellation and Termination of Government Construction Contracts. Journal of Indonesian Legal Studies, 8(1), 129–158. https://doi.org/10.15294/jils.v8i1.68937
Nugraha, D. (2022). Supervening events in Indonesian commercial contracts and the COVID-19 pandemic. Journal of Central Banking Law and Institutions, 1(2), 205–224.
Ri, P. (2017). Undang-Undang Republik Indonesia Nomor 8 Tahun 1999 Tentang Perlindungan Konsumen. https://pustaka.uniraya.ac.id/index.php?p=show_detail&id=153
Sabrina, A., Wisnuwardhani, D. A., Sunarjo, S., & Lailawaty, F. D. (2023). Penyelesaian Wanprestasi dalam Pelaksanaan Perjanjian Jual Beli Sepeda Motor melalui Sistem Inden. Bhirawa Law Journal, 4(1), 60–68. https://doi.org/10.26905/blj.v4i1.10340
Scott, R. E., & Triantis, G. G. (2004). Embedded Options and the Case against Compensation in Contract Law. Columbia Law Review, 104(6), 1428–1428. https://doi.org/10.2307/4099375
SSEK Law Firm. (2020). COVID-19 and Indonesia: Force majeure and other considerations. Mondaq. https://www.mondaq.com/litigation-contracts-and-force-majeure/924100/covid-19-and-indonesia-force-majeure-and-other-considerations
Subagyono, B. S. A., Astutik, S., Chumaida, Z. V., Romadhona, M. K., & Usanti, T. P. (2023). Consumer Dispute in Electronic Transactions: State Obligation and Dispute Settlement Under Indonesia Consumer Protection Law. Journal of Law and Sustainable Development, 11(10). https://doi.org/10.55908/sdgs.v11i10.1240
Subekti, S., Suyanto, S., Hamdani, F., & Begishev, I. (2025). Comparative Perspectives on Contract Law in Property Sale and Transfer: Oman and Indonesia. Jurnal Hukum Bisnis Bonum Commune, 541–562. https://doi.org/10.30996/jhbbc.v8i2.132128
Suharnoko, S. (2012). Contract Law In A Comparative Perspective. Indonesia Law Review, 2(2). https://doi.org/10.15742/ilrev.v2n2.14
Visaria, S. (2009). Legal Reform and Loan Repayment: The Microeconomic Impact of Debt Recovery Tribunals in India. American Economic Journal Applied Economics, 1(3), 59–81. https://doi.org/10.1257/app.1.3.59
Zubir, A., Wasitaatmadja, F. F., & Sadino, S. (2024). The Imposition of Financial Consequences Due to Force Majeure in Construction Service Agreements. Audito Comparative Law Journal (ACLJ), 5(2), 92–104. https://doi.org/10.22219/aclj.v5i2.33064
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
